Question
Two products, LB and NH, emerge from a joint process. Product lB has been allocated $13,300 of the total joint costs of $34,000. A total
Two products, LB and NH, emerge from a joint process. Product lB has been allocated $13,300 of the total joint costs of $34,000. A total of 2,000 units of product lb are produced from the joint process. Product LB can be sold at the split-off point for $12 per unit, or it can be processed further for an additional total cost of $10,000 and then sold for $14 per unit. If product LB is processed further and sold, what would be the effect on the overall profit of the company compared with sale in its unprocessed form directly after the split-off point? |
$7,300 more profit
$6,000 less profit
$19,300 less profit
$18,000 more profit
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